We are facing a very uncertain world in 2018. On the
domestic front we have the Brexit situation to deal
with and possibly elections in Germany and Ireland.

On the wider international stage, the threat of ISIShas not been eliminated and there remains a bigquestion mark over whether the US/North Korea warof words will escalate into an actual war. Againstthat background, the City’s angst over implement-ing MiFID II is almost comical. Having said that,for Aquis this is a critical piece of legislation and itmakes me very optimistic for next year. It vindicatesmany of the things we’ve said in the past and howour deep liquidity, non-toxic flow and subscriptionpricing model makes Aquis the ideal exchange forthose seeing to achieve Best Execution.

Alasdair Haynes, founder and CEO, Aquis Exchange

Data will be power

Data used to be expensive, proprietary and thesecret sauce for asset managers. However, as infor-mation becomes more ubiquitous, data analyticsand data science can give firms an edge by turningraw data, assumptions and customer behavioursinto knowledge. The buy-side is investing to findinnovative ways to use these data sources andrevolutionise research analyst models with truepredictive modelling. By connecting real consumerbehaviour with disparate internal and external datasources, firms can create a method for making thesesignals both visible and actionable. With the currentmarket dynamics, building a team of scarce talent,specifically highly skilled data scientists who can fil-ter signals from a massive amount of data, is almostprohibitively expensive. This, in turn, is leading tonew platforms emerging that combine the exper-tise of data scientists, data collection and industryexperts while delivering fact-based market modelsand behavioural insights.

Rise of the independent analyst

The independent research provider will begin torise to prominence in 2018. Their more potent voicein the market will have an impact on everyoneincluding investors, corporates and investmentbankers. We expect that by this time next year, ifyou aren’t open to independent analysts then youaren’t speaking to the most influential voices in themarket. Independent insight providers have beenempowered by regulatory changes, such as MiFIDII, as well as the reduction in market barriers toentry, such as powerful technology networks andplatforms that aid transition from sell-side to inde-pendent roles. Many more highly regarded analystswill be taking the leap next year as unconflictedresearch becomes more widespread and necessaryfor investors’ strategies.